updated 01:38 pm EDT, Mon March 18, 2013

Sharp to fail in defining display specifications in time, $60M delayed

A $60 million payment to Sharp from Qualcomm as part of an investment agreement has been delayed, due to a looming deadline set to be missed. The second half of the $120 million deal had a number of requirements in order to be paid on time, including making an operating profit in the second half of its financial year, holding net assets worth at least 100 billion yen ($1.05), and to prepare for the production of new display panels, requirements which Sharp has failed to accomplish.

The agreement, made with Qualcomm subsidiary Pixtronix, needed Sharp to complete specifications for new tablet and smartphone panels based on IGZO and MEMS technology, potentially resulting in bright and sharp panels that require a fraction of the power used in current displays. The specifications need to be finalized by March 29th, but this will apparently not be possible, according toReuters.

A company spokeswoman for Sharp told the news agency "The financial targets are not the reason for the delay," suggesting that the product development requirements were the main issue. A new deadline has been set for June 30th with the same $60 million second payment being Sharp's reward.

Though the extra $60 million would help Sharp in its present financial situation, it isn't the only deal with other companies it has made in the last few months. Recently, it made a similar agreement with Samsung, with $112 million being exchanged for newly-issued Sharp shares equating to a 3.08-percent ownership stake, as well as a "mutual trust relationship" where Sharp would become a long-term supplier for Samsung's own production lines, providing a relatively stable source of revenue.